The U.S. stock market took investors on a stomach-churning ride
Monday, as the Dow Jones industrial average briefly plunged more than
1,000 points and sent a shiver of fear from Wall Street to Main Street.
Stocks regained much of that ground as the day wore on. But the slump
— part of a global wave of selling triggered by the slowdown in China —
reflected uncertainty among investors over where to put their money
when the world’s second-largest economy is in a slide.
U.S. treasurys surged as investors bought less risky assets. Oil prices
fell. But investors also saw opportunity, moving fast and early to snap
up some bargains. That helped trim some of the market’s earlier losses.
Read the full story here.
NEW YORK (AP) — U.S. markets plunged at the open Monday following a big drop in Chinese stocks.
The Dow Jones industrial average fell more than 1,000 points in early trading.
The Dow was 783 points, or 4.8 percent, lower as of 9:40 a.m. Eastern time. The Standard & Poor’s 500 index dropped 87 points, or 4.5 percent, to 1,882. The Nasdaq composite fell 247 points, or 5.1 percent, to 4,465 points.
BEIJING (AP) — Chinese stocks tumbled again Tuesday after their biggest decline in eight years while most other Asian markets rebounded from a day of heavy losses.
The Shanghai Composite Index fell 6.4 percent in the first minutes of trading but later trimmed some of those losses and was down 5.5 percent at 3,035.83. The Shenzhen Composite Index for China’s smaller second exchange lost 4.6 percent.
Tokyo’s Nikkei 225, however, was up 2.1 percent at 18,147.42 after losing 4.6 percent the previous session. Hong Kong’s Hang Seng, which also lost 4.6 percent on Monday, gained 1.3 percent to 21,429.17. Sydney’s S&P ASX 200 advanced 1.4 percent to 5,073.20 and Seoul’s Kospi was steady at 1,829.06 after shedding 3 percent the previous day.
China’s fall was the latest in a series of jarring declines that have defied multibillion-dollar government efforts to stem a slide in prices following an explosive market boom.
Monday’s 8.5 percent loss for the Shanghai index triggered a global selloff.
On Wall Street, the Dow Jones industrial average lost 3.6 percent. The Standard & Poor’s 500 fell 3.9 percent, putting it in correction territory, the term for a drop of at least 10 percent from a recent peak. In Europe, Germany’s DAX index fell 4.7 percent, France’s CAC-40 slid 5.4 percent and Britain’s FTSE 100 lost 4.7 percent.
“There was no clear catalyst for the global stock meltdown. The lack of clarity makes it difficult to assess what is needed to stem the rout,” said Bernard Aw of IG Markets in a report.
“A coordinated policy response is critical, and much of this needs to come from Asian economies,” Aw said. “A spate of better economic news may help to allay concerns that global growth is not deteriorating. Certainly, improvements in the Chinese economy will be welcomed.”
China’s declines reflecting the cooling of a market boom that was driven by official policy and cheerleading from the government press, rather than by economic fundamentals. The Shanghai index rose 150 percent beginning late last year even as the world’s second-largest economy was cooling, leaving little to support higher prices once investor enthusiasm faltered.